Zywicki Appears Before House Financial Services Committee
The House Financial Services Committee held a full committee hearing on July 15 on "Banking Industry Perspectives on the Obama Administration's Financial Regulatory Reform Proposals" in which Professor Todd Zywicki presented testimony.
Zywicki's remarks centered on the Obama Administration's proposal to create a new Consumer Financial Protection Agency (CFPA) charged with the authority to issue and enforce new regulations related to consumer lending products, something to which he is opposed.
Zywicki expressed his belief that the CFPA is "premised on a fundamental misunderstanding of the causes of the financial crisis," causes that he attributes to misaligned incentives and rational consumer response to them, rather than to lack of understanding by consumers of the loans they were obtaining.
Read related article in National Mortgage Professional Magazine